Blog – Don’t Let an Accident Milk Your Farmer Needs

What happens when the person who never takes a sick day suddenly can’t work for months? 

 Picture this: You’re out checking the herd on a wet morning when your boot slips on the concrete. The crack you hear isn’t just your ankle—it’s the sound of your farming season potentially falling apart. You’re facing months off your feet, but the cows still need milking, the bills keep coming, and your family’s future suddenly feels uncertain. 

This scenario plays out on New Zealand farms more often than we’d like to think. Farming is one of our most physically demanding occupations. From pre-dawn milkings to handling heavy machinery and livestock, dairy farmers face daily risks that most office workers never encounter. That’s why understanding your ACC options isn’t just smart business—it’s essential for protecting your farm and family. 

The Reality Check: Standard ACC Coverage Might Not Be Enough 

If you’re self-employed or a shareholder in your dairy farming operation, you’re automatically covered under ACC’s standard scheme called ACC CoverPlus. While this provides basic protection, it comes with some significant limitations that many farmers discover too late: 

The Financial Loss Hurdle: ACC will want you to prove that your accident has caused a genuine financial loss to your business. If milk prices have risen or your farm’s income was set to increase anyway, you might be required to pay back any compensation ACC has advanced to you. 

The Abatement Trap: As soon as you start returning to work—even for just a few hours a day—your compensation begins reducing based on the number of hours you’re working. This can leave you in a difficult financial position during recovery. 

No Guaranteed Cover: Unlike other insurance policies, there’s no certainty about what weekly compensation you’ll receive while unable to work. 

A Better Option: ACC CoverPlus Extra 

For many dairy farmers, ACC CoverPlus Extra (CPX) offers a more suitable alternative. Here’s how it works differently: 

The Contract Approach 

With CoverPlus Extra, you and ACC agree upfront on the amount of weekly compensation you’ll receive if injured. This amount is then paid on a weekly basis until you can return to work full-time—no arguments, no proving financial loss. 

Real-World Example 

Let’s say you’re a dairy farmer with an annual income of $130,000. Under standard ACC CoverPlus, you’d pay levies based on this full income level. However, you know that if you had an accident, you could hire a farm manager for $80,000 per year and maintain most of your farm’s income. 

With CoverPlus Extra, you could apply for cover of $80,000 rather than the full $130,000. This results in: 

• Lower annual levies 

• Guaranteed compensation if you’re injured 

• Certainty and peace of mind for you and your family 
  
  

Key Benefits for Farmers 

• Predictable costs: You know exactly what you’ll pay and what you’ll receive 

• Smoother claims process: No need to prove ongoing financial loss 

• Future planning: You can nominate a future start date for your cover 

• Tax advantages: If your farming company pays the levy, it’s tax-deductible 
  
  

Getting Your Claim Started 

When you do need to make a claim, the process starts at the point of injury. Whether you’re treated by your local GP or at the hospital, you should complete an ACC Claim form explaining: 

• What injury you’ve suffered 

• How the accident happened 

• That you’re unable to continue working 

• Your employment status (self-employed or shareholder employee) 

Pro tip: Speed up the process by calling the ACC Claims Service Centre on 0800-101-996. They can help get your compensation claim underway more quickly. 

Making the Right Choice for Your Farm 

The decision between standard CoverPlus and CoverPlus Extra should be based on your individual circumstances. Consider factors like: 

• Your farm’s income stability 

• Whether you could maintain income by hiring help 

• Your family’s financial security needs 

• The level of physical risk in your farming operation 
  
  

Don’t Navigate This Alone 

ACC rules and options can be complex, especially when you’re dealing with the unique challenges of farming operations. The investment in professional advice to set up the right cover is minimal compared to the financial protection it provides. 

Remember, accidents don’t wait for convenient times. Having the right ACC cover in place means you can focus on what matters most—recovering and getting back to the work you love.
 

Take Action Today: Don’t Wait for an Accident to Test Your Coverage 

The best time to review your ACC options is when you’re healthy and thinking clearly—not when you’re dealing with an injury and trying to keep your farm running from a hospital bed. 

Here’s what you need to do right now: 

1. Review your current ACC status: Are you on standard CoverPlus or do you have CoverPlus Extra?

2. Calculate the real numbers: What would it actually cost to keep your farm operating if you couldn’t work?

3. Get professional advice: Don’t guess when your family’s financial security is on the line 
   
   

Ready to protect your farm the smart way? Contact CMK Accountants today for a no-obligation review of your ACC options. We’ll help you understand exactly what you’re currently covered for and show you how the right ACC strategy could save you money while providing better protection. 

Don’t let an accident milk your farm dry. Take control of your ACC coverage before you need it. 

Contact CMK Accountants Today:  phone 067656178  or email cmk@cmk.co.nz 

Let us help you make sure your family’s future is protected, no matter what happens on the farm. 

Bottom Line: Your farm feeds families across New Zealand—make sure the right ACC coverage is there to feed yours when you need it most. Standard ACC coverage might not be enough, but with the right planning, you can ensure your family’s future is secure no matter what happens on the farm. 

This article is for general guidance only and should not replace professional advice specific to your situation. Contact us to discuss your individual circumstances and ACC options.